Bitcoin reached record levels on Monday, when President Donald Trump and first lady Melania Trump launched their meme coins, days before the inauguration.
The cryptocurrency leader topped $108,000 (£88,668) for the first time on Monday morning, ahead of Trump’s official return to power.
Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “With the writing on the wall so overwhelmingly pro-crypto as Trump returns to the White House, the value of Bitcoin has risen again to reach a new record.
This price surge follows the launch this weekend of the Trump family’s cryptocurrencies, under the names $TRUMP and $MELANIA.
Both meme coins initially rose dramatically, with Trump’s crypto gaining over 18,000% in value in its first 24 hours.
By Saturday afternoon, just hours after its launch, the market capitalization of the meme had reached $5.5 billion (£4.5 billion). reported CoinMarketCapmaking it one of the most talked about digital assets in the world.
He featured his piece on his social media platform, Truth Social, calling it a celebration of “everything we stand for: WIN!” »
Melania followed suit on Sunday evening by announcing the launch of her own coin on Musk’s Xurging investors to “buy $MELANIA now.”
His coin distracted attention and the market value from Trump’s coin, which fell below $8 billion (£6.5 billion) at one point.
Both coins have been described as symbolic rather than financial instruments, having been denied as “non-political” or linked to campaigns.
Yet critics have accused the Trumps of using their programs to profit from stock speculation.
Cryptocurrency venture capitalist Nick Tomaino called the timing and structure “predatory,” warning that many investors could lose money when the hype fades.
Meme coins are known for their volatility and lack of stable intrinsic value, relying on social media buzz for their demand.
Some have praised Trump for embracing digital currencies, seeing it as a broader sign that his new administration, starting Monday, will be pro-crypto.
This follows his promise to make the United States the “crypto capital of the planet” during his presidential campaign.
Streeter viewed this as a “sign that Trump’s promise to make the United States the Bitcoin capital of the world will be honored.” “
Others saw the move as an attack on crypto’s credibility.
“Meme coins like this are a distraction and a setback to serious crypto projects,” said Rob Hadick, partner at Dragonfly Capital.
The timing of the two launches also raised questions about their purpose, raising accusations of profiteering, with critics suggesting the projects were designed to capitalize on the president’s return to power.
Streeter, however, cautioned investors: “While institutional interest and expected changes in regulation add more legitimacy, it is still a very volatile asset and has a history of falling sharply after strong increases. »
By city AM
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